Daijiworld Media Network – New Delhi
New Delhi, Sep 10: Auto parts maker Hero Motors Ltd on Thursday fixed the price band for its Rs 1,000-crore Initial Public Offering (IPO) at Rs 79-84 per equity share. The three-day public issue will open for subscription on September 16 and close on September 18.
The IPO comprises a fresh issue of equity shares worth up to Rs 600 crore and an Offer For Sale (OFS) of shares worth up to Rs 400 crore by promoters.
As part of the OFS, O P Munjal Holdings will sell shares worth Rs 395 crore, while Hero Cycles Ltd will divest shares worth Rs 5 crore.
Of the fresh issue proceeds, Rs 190 crore will be used for repayment or prepayment of certain outstanding borrowings, while Rs 200 crore will be utilised for purchasing equipment required for capacity expansion at the company’s facility in Gautam Buddha Nagar, Uttar Pradesh.
The remaining funds will be used for inorganic growth through unidentified acquisitions and other strategic initiatives, besides general corporate purposes.
Hero Motors had filed its Draft Red Herring Prospectus (DRHP) in June 2025 for a Rs 1,200-crore IPO, comprising a fresh issue of Rs 800 crore and an OFS of Rs 400 crore. The company has since reduced the fresh issue to Rs 600 crore, bringing the total IPO size down to Rs 1,000 crore, and revised the OFS structure.
Hero Motors is one of India’s leading automotive technology companies, engaged in designing, developing, manufacturing and supplying engineered powertrain solutions to automotive original equipment manufacturers (OEMs) across the US, Europe, India and the Association of Southeast Asian Nations (ASEAN) region.
The company counts global customers including BMW AG, Ducati Motor Holding S.P.A., Enviolo International Inc, Formula Motorsport Ltd and Hummingbird EV.
Hero Motors is expected to make its stock market debut on September 23.
ICICI Securities, DAM Capital Advisors and JM Financial are the book-running lead managers to the issue, while KFin Technologies is the registrar.